Table 1 Simplified balance sheets

Central bank advances $A^s$

Bank reserves R

Cash currency $M^s$

Capital pK

Debt L

Equity $E_q$

Earned surplus $E_s$

Lending $L^b$

Bank reserves R

Deposit $D^h$

Central bank advances $A^b$

Cash currency $M^h$

Deposit $D^h$

Equity $E_q$

Wealth W